TC Energy (TRP.TO)

Would like it to be in the mid-$30 to be cheap enough for him to Buy. About 40% of the NAV is the TransCanada mainline, which doesn’t have any gas in it. They are changing it to oil, but they have to go through all the boxes to do so.

If keystone does not get approved then Canada needs to move oil to the east or south. The east coast pipeline will be a reality and most of the cost will be born by TRP. You will see gas prices out east come down. We will be decreasing imports of oil from off shore. There will be lots of little hurdles as it tries to go through towns.

Preferred C. In the last couple of months, spreads have widened a little but this is been a general overflow. As people indiscriminately need to sell income-producing securities, they might be selling funds that own this type of paper and the manager has no choice but to raise liquidity. It could also be ETF pressure where money is being taken out and the program has to mechanically sell. Hold steady. In the next year or 2 or 3 you will have an opportunity to get higher cash flows from a higher government of Canada bonds more than likely.

Pays a reasonable dividend which they increased. Company has a lot of potential for them. Keystone was a real stumbling point. Given the assets we have in Alberta, getting a pipeline out to salt water will happen.

This is very natural gas oriented and has gotten hit because there is not enough natural gas capacity to keep the gas lines full. In the end, providers get hit with higher toll rates. These are the dynamics and they are not working themselves out for a while. If Keystone got accepted today, the stock would get a pop but the more interesting play is the recent announcement of moving oil from West to East. Prefers Enbridge (ENB-T) but trades at 20X earnings, not cheap, but is a better class asset. So it is a “pick your poison”. Do you want the higher quality of Enbridge or TransCanada and hope that moving oil West to East works itself out.

(A Top Pick Oct 1/12. Up 8.57%.) Thinks view is that Keystone XL will go through. Feels that in the next couple of weeks you might get a positive announcement on converting the mainline. $25 billion of potential growth opportunities between now and 2018. Stock had a bit of a pull back with rising yields. They are not that sensitive to a rate increase in interest rates.

Current price for the stock does not take Keystone XL into consideration at all. (Politics in the US are impenetrable.) Likes this pipeline. Well run, nice yield and good growth. He sees demand for pipelines being in the system for decades.

(Market Call Minute.) Has sold down his holdings in the last 6 months out of fear of the impact of higher longer-term interest rates might have on the valuations. Now getting back towards buying range. If Keystone does go ahead, he thinks it will get a fillip. The negatives of Keystone are largely discounted in the price.

A very well run Canadian company, but fully valued at 22 times earnings. It is a pure dividend play and rising interest rates will put a cap on price appreciation.

Now would be an interesting time. There is a clear pullback and test of a support. You could nibble here.

Pipelines, generally speaking, are not a bad place to be looking. With all the new development of resources, we are going to want to move them and he doesn’t believe this is all going to happen by rail necessarily. For this one, the big question today has been the Keystone XL pipeline, which appears to be a political football. Should that be turned down, the stock could take a little bit of a hit. If you have a 3-5 year outlook, you could safely buy it here.

This is tied into the whole question of Keystone XL and what happens. Of all the pipeline stocks, this is the one she does not own. She had concerns about natural gas transmissions in the pricing they would get on their mainline which was declining. Would prefer the other pipelines.

The interest sensitive stocks, utilities and pipelines, all got hammered in the last week or so. A bit premature. We haven’t seen a significant move in interest rates across the board. Most of the stocks have quite decent yields and well above anything you can get on the fixed income side. Pays a reasonable dividend.

Before he did anything with this stock, he would want to see the outcome of Keystone. If Keystone doesn’t work, then this company will get hit. They have a lot of inventory that will have to be disposed of.

60% of the value is priced into the current shares, so he's been trimming back. But a very good stock over the next few years.